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Prices have gone up and down quite a bit just over the past 12-15 years; you can't say they have "never" gone down or will "never" go down again. But will there be a time when California housing prices will decline to a point where they are commensurate with housing prices in less desirable, low COL states like Arkansas? I highly doubt it, not in any of our lifetimes.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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It's a big state, in some areas they will go down, and some already have. I'm thinking of areas in the foothills with few jobs and most likely to be affected by wildfires. I saw a listing for a home in Penn Valley for $243k, but Zillow show that the value a year ago was $408k.
It's a big state, in some areas they will go down, and some already have. I'm thinking of areas in the foothills with few jobs and most likely to be affected by wildfires. I saw a listing for a home in Penn Valley for $243k, but Zillow show that the value a year ago was $408k.
Fire insurance is very pricey in that area and other fire-prone foothills locations. It can be hard to get and to afford. Parts of Penn Valley and Nevada County have been hard hit by wildfires in the last few years. There are many, many homes for sale for much lower prices than a few years ago. One of my friends had her homeowners insurance increase from $900 per year to $4400 per year. She can afford it, although it doesn't make her happy, but I know several people who are selling their homes and moving out of the area solely due to the fire insurance situation. Very sad. So buyer beware and do all due diligence before purchasing in a fire-prone area.
Back in the eighties mortgage interest rates were absurd. Some houses in CA just didn't sell. Other sellers would take back a mortgage at below-market rates so they didn't have to drop their price.
Does that make it true that prices didn't decrease??
It depends a lot on location within the state, economic conditions, housing availability, distance from metropolitan areas, insurance rates in a given area, etc.
So, in a place like Needles (which is technically in California) prices can, and likely will, drop. However, 300 miles to the west in Irvine, prices probably won't ever drop -- unless a ton of new developments come online.
Last edited by apple92680; 02-26-2021 at 12:27 PM..
prices dropped in probably 90% of CA at some point in 2006-2010 at least.
So, I'm not sure if we can say "California" as a monolithic entity will do anything uniformly or not.
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